PROJECT

Projects

Summary of Investment Information

Project Number

50237

Company Name

BANK ASIA PLC

Date SPI Disclosed

Nov 11, 2024

Country

Bangladesh

Region

South Asia

Projected Board Date

Dec 16, 2024

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jan 23, 2025

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Dec 18, 2024
Signed : Dec 23, 2024
Invested : Jan 21, 2025

Sector

Commercial Banking - General

Additional Project Attributes

Blended Finance

Project Description

The proposed project consists of a senior loan of up to US$50 million to Bank Asia PLC (“Bank Asia” or “Bank”) in Bangladesh with a tenor of two years and with an option to rollover for an additional two years for a maximum tenor of four years. The proceeds of the investment will be used to meet the bank's immediate liquidity needs and extend loans to eligible sub-borrowers (export/import-based SMEs as per IFC’s definition of targeted sectors) through its offshore banking units (OBU) to enable the Bank to continue to support key sectors of the Bangladeshi economy affected by COVID-19 and the subsequent global economic headwinds.

 The Project will be supported by a pooled first loss guarantee of up to US$40 million provided by International Development Agency IDA Private Sector Window Blended Finance Facility (IDA-PSW BFF).                            

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation